Personal Car used more for work

[BustersDogs]

I use my personal car for work when my van is out on the dog walking rounds, and over the past few months I've worked out 98% of my travel is for business use. Yes I need a life!!

I'm now looking to get another car that I can put the dogs and work equipment in as well, mostly mine but clients too, both for work, can the business buy the car, pay the insurance/tax etc as well as the van, or do I just keep claiming the 45p per mile?

So far in January I haven't driven it for personal use at all, and in December I did 4 miles, which was probably a trip to the town to buy some last minute xmas presents!

I'm a sole trader.

 

[elaine@cheapaccounting]

Yes the business can buy the car and put al of the costs through the business. Note though that you claim capital allowances for the cost of the car.

You do not also get the 45p / mile

Plus you put a personal use adjustment through at the end of the year.

Keep a good mileage log as you seem to be doing.

 

[BustersDogs]

That's great news, thank you! I'm not sure what some of that means, but it means I can get a slightly newer car than I was planning. Thank you again. :-D

 

[MyAccountantOnline]

That's great news, thank you! I'm not sure what some of that means, but it means I can get a slightly newer car than I was planning. Thank you again. :-D

In a nutshell if your turnover is below the VAT threshold you can claim either -

1. All of the costs of running the car and capital allowances less a percentage which relates to private use. So as an example if your total motoring expenses with capital allowances were £8,000 and 90% of your trips are solely business use you'd claim £7,200, or

2. 45p per mile for the first 10,000 miles per annum and 25ppm thereafter.

You work out which gives you the biggest claim and use that.

 

[BustersDogs]

ok thank you! I was hoping the business could buy it, as I'd like to get a loan to cover some of the costs so I can get a newer one than I could afford paying cash.

 

[elaine@cheapaccounting]

As a sole trader you are the business - so the loan would be yours anyway. Business proportion of loan interest would be allowable.

 

[BustersDogs]

I know it's all me really, but in my head I keep them separate. Put a deposit down today, got my first ever loan, just have to keep working hard now! The jobs I was going to finish early I will now have to keep going as I had to borrow half the money.

Thanks for your help. :-D

 

[S-Marketing]

I know it's all me really, but in my head I keep them separate. Put a deposit down today, got my first ever loan, just have to keep working hard now! The jobs I was going to finish early I will now have to keep going as I had to borrow half the money.

Thanks for your help. :-D

What car have you decided on?

 

[BustersDogs]

I've gone for a Rav4, it suits my doggie needs, has the 4wd which admittedly we only need for snow a few weeks per year, but I do go into fields on occasion, and I miss the 4wd that I had on my last van. Getting forced onto a verge down a country lane (by some idiot in a huge 4wd ) I feel more confident!

Plus, the only place that has more Chelsea Tractors than Brentwood is Chelsea, so it's customer relations, something for them to identify with. That's my excuse anyway.

 

[foofighting]

Sorry, wrong thread.... LOL.